CBP.CN
Certive Solutions Inc
Price:  
0.01 
CAD
Volume:  
25,820.00
Canada | N/A
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CBP.CN WACC - Weighted Average Cost of Capital

The WACC of Certive Solutions Inc (CBP.CN) is 4.9%.

The Cost of Equity of Certive Solutions Inc (CBP.CN) is 8.90%.
The Cost of Debt of Certive Solutions Inc (CBP.CN) is 5.50%.

Range Selected
Cost of equity 7.00% - 10.80% 8.90%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.7% - 6.1% 4.9%
WACC

CBP.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.75 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.80%
Tax rate 25.90% 26.50%
Debt/Equity ratio 4.8 4.8
Cost of debt 4.00% 7.00%
After-tax WACC 3.7% 6.1%
Selected WACC 4.9%

CBP.CN's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CBP.CN:

cost_of_equity (8.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.